The hawkish stance of the Federal Reserve and the strengthening of the US dollar are putting pressure on metal prices, causing copper prices to fall.

Due to the hawkish stance of the Federal Reserve and the continued strength of the US dollar, market confidence in industrial metals has been suppressed, leading to a decline in copper prices. London three-month copper futures fell to around $13,300 per ton, marking the second consecutive week of decline. Previously, Federal Reserve policymakers had signaled that they would increase interest rates in the coming months to address the persistent high inflation in the US. Last week, the US dollar reached its highest level since November of last year. Additionally, there is market speculation that the Trump administration may impose tariffs on the circulation of refined metals, drawing attention to US trade policy. On the other hand, Goldman Sachs stated that the conflict in Iran will ultimately boost metal demand. Analysts, including Samantha Dart, pointed out in a report that factors such as increasing demand for electric vehicles, further growth in investments in renewable energy, rising defense spending, and intensifying competition in artificial intelligence will support copper demand. The bank recently raised its average copper price forecasts for the end of 2026 and 2027 to $13,735 per ton and $13,800 per ton, respectively.